Insurance: Not just for flights anymore

Americans like big reminders, not small. Faced with a box to check for travel insurance while booking online, most travelers do not. Why should they? There are no hurricanes, airline pilot strikes or acts of God in their den or home office at the time they book the trip.

But a measly second-rate volcano belches a few billion tons of ash, causing the cancellation of 102,000 flights, and suddenly everyone wonders about travel insurance.

Associated Press

The airlines are likely to make good on flights, but what if you miss your European tour?

If they don’t wonder, they should.

It’s not about the 102,000 flights. It’s about the hundreds of thousands of small fortunes spent and lost because of the flights. That week in Club Med? Gone. Those nights at the Waldorf? Gone. That trekking tour in Nepal? Gone. The deposit for the honeymoon in Oaxaca? Adios. (Yes, some understanding companies will be reasonable, but plan on losing at least the deposit or a hefty cancellation penalty.)

“It’s unfortunate that events like this remind people of why you need travel insurance,” says Carol Mueller, a spokeswoman for Travel Guard. “The airlines are going to do something to make good, but if you had plans with a tour operator, that’s probably gone.”

In many cases, stranded passengers were forced to find lodging — an expense that will come out of their pockets and likely never return. (It turns out the Iceland volcano incident is considered by the insurance industry as “inclement weather.” Go figure.)

Yes, travel insurance requires some work — you have to do the research and read the fine print — and, frankly, not every firm out there has a stellar reputation.

Plans vary wildly, but the basic elements include coverage for: trip cancellation, interruption or delay, as well as medical expenses and evacuation, and baggage loss or damage. Several firms offer emergency travel assistance, essentially, a phone number to call for help dealing with the crisis. Ask about these when shopping.

Is insurance for everyone on every trip? Probably not. It depends on the trip: If you’re flying to see Grandma in Portland on a loose schedule, maybe not; if you stand to lose the equivalent of a down payment on a car because of something as minor as a pinhole in the plane’s nose cone, you probably should consider insurance.